Petrobras Informs – Reversal of allowance for impairment of trade receivables

Petrobras Informs – Reversal of allowance for impairment of trade receivables

Rio de Janeiro, May 20, 2015 – Petróleo Brasileiro SA – Petrobras informs that it has provisioned, in its 2014 Financial Statements,  an allowance for impairment of trade receivables to cover uncollateralized receivables.

In the 1st quarter 2015 financial statements, as disclosed in the note 7.4, we informed about the reversion of part of these allowances in the amount of approximately R$ 1.3 billion.

The inclusion of collaterals has made this reversion possible, which was formalized in May 7, 2015, due to the pledge of additional receivables the Fuel Consumption Account (Conta de Consumo de Combustível – CCC) has from the Brazilian Energy Development Account (Conta de Desenvolvimento Energético – CDE).

The signature of the pledge agreement formalized the conclusion of a negotiation process started on March, 2015 and therefore, still in the first quarter and includes the recognition by the Brazilian Electric Energy Agency – ANEEL of new amounts to be included in the 2016 Annual Plan of the Fuel Consumption Account (CCC).

In accordance with to CPC 24 (related to the International Accounting Standards – IAS 10) – Subsequent Events – issued by the Accounting Standards Committee, the effects of the conclusion of this process were recognized in the 1st quarter 2015 financial statements, as they are considered a subsequent event with amending effects, that occurred before the disclose of the quarter results, with an effective inclusion of collaterals and consequent credit improvement.